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| 8-K - FORM 8-K FILING DOCUMENT - TF FINANCIAL CORP | document.htm |
EXHIBIT 99.1
TF Financial Corporation Reports Improved First Quarter 2012 Results and Quarterly Dividend
NEWTOWN, Pa., April 26, 2012 (GLOBE NEWSWIRE) -- TF Financial Corporation (Nasdaq:THRD) today reported net income of $1,155,000 ($0.42 per diluted share) for the first quarter of 2012, an 87% increase when compared with $618,000 ($0.23 per diluted share) for the first quarter of 2011. The Company also announced that its Board of Directors declared a quarterly dividend of $0.05 per share, payable May 15, 2012 to shareholders of record on May 8, 2012.
"The main developments during the first quarter involved significant progress moving problem loans through the resolution pipeline and disposing of commercial real estate we had been holding following foreclosures. Late in the quarter we closed on the sales of two large such properties. Consequently, foreclosed property declined to $10.2 million at quarter end, and total non-performing assets were at 3.48% of total assets, continuing a downward trend from 3.56% at year end 2011 and 4.25% at the end of the first quarter a year ago," said Kent C. Lufkin, President and Chief Executive Officer.
"Quarterly net income nearly doubled year-over-year, the net interest margin declined slightly but remained at a healthy 3.78%, and notably, our capital ratios continue to be quite strong, with Tier 1 Leverage and Total Risk-Based ratios of 10.14% and 18.23% at March 31," Lufkin said.
Results for the current quarter included:
- Pre-tax income was $1,473,000 for the quarter, an increase of $783,000 over the first quarter of 2011. The key drivers of this increase were a $400,000 decrease in the provision for loan losses and a $498,000 increase in non-interest income, mainly the result of a $207,000 increase in the gain on sale of loans and a $264,000 gain related to an eminent domain matter affecting a parcel of Company property.
- Net interest income was $5,792,000 which was a $24,000 or 0.4% decrease when compared with the first quarter of 2011. Similarly, the Company's net interest margin decreased by 2 basis points to 3.78% from 3.80%. The yields on the Company's interest-earning assets fell by 37 basis points for the first quarter of 2012 compared with the first quarter of 2011, mainly due to the consequences of record-low market interest rates which have occurred since the first quarter of 2011, causing mortgage loan borrowers to refinance their higher rate loans into those with lower rates and the resulting downward drift in the Company's loan and mortgage-backed securities yields. However, the cost of the Company's interest bearing liabilities improved by 37 basis points since the first quarter of 2011, primarily the result of a 31 basis point or 28.7% improvement in the cost of deposits, due to a favorable change in the deposit pricing and mix, and the maturity of time deposits which had been originated during periods of higher market interest rates.
- The provision for loan losses was $500,000 for the quarter compared with $900,000 for the first quarter of 2011. The allowance for loan losses stood at approximately $7.0 million at March 31, 2012, and while the allowance has decreased as amounts which had been assigned to specific loans are charged off, the allowance as a percentage of loans was a healthy 1.40% and as a percentage of non-performing loans was 50.3%.
- Overall, asset quality continued to show improvement with total non-performing assets at 3.48% of total assets, down from 3.56% at year end 2011 and 4.25% at March 31, 2011. Non-performing loans were $13.9 million at quarter end compared with $12.5 million at December 31, 2011. Foreclosed property at March 31, 2012 was $10.2 million compared with $11.7 million at December 31, 2011.
- Loans outstanding were $498.4 million, a $4.4 million or 0.9% decrease for the first quarter of 2012. Mortgage loans originated for sale were $15.9 million compared with $5.8 million for the first quarter of 2011.
- At quarter end, total deposits were $562.2 million, a $10.9 million or 2.0% increase when compared with December 31, 2011, and a $14.4 million or 2.6% increase when compared with $547.8 million at March 31, 2011.
- Non-interest expenses were $91,000 higher in the first quarter of 2012 compared to the first quarter of 2011. Expenses of foreclosed property were $287,000 for the first quarter of 2012 compared with $61,000 for the first quarter of 2011.
TF Financial Corporation is a holding company whose principal subsidiary is 3rd Fed Bank, which operates 14 full service retail and commercial banking offices in Philadelphia and Bucks County, Pennsylvania and in Mercer County, New Jersey. Deposits at 3rd Fed Bank are insured up to the maximum amount by the Federal Deposit Insurance Corporation (FDIC). In addition, the Bank's website can be found at www.thirdfedbank.com. Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by TF Financial Corporation with the Securities and Exchange Commission from time to time. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
| T F FINANCIAL CORPORATION | |||||
| UNAUDITED FINANCIAL INFORMATION | |||||
| (dollars in thousands except per share data) | QUARTER ENDED | ||||
| 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | |
| EARNINGS SUMMARY | |||||
| Interest income | $ 7,263 | $ 7,613 | $ 7,908 | $ 7,932 | $ 7,835 |
| Interest expense | 1,471 | 1,550 | 1,903 | 1,943 | 2,019 |
| Net interest income | 5,792 | 6,063 | 6,005 | 5,989 | 5,816 |
| Loan loss provision | 500 | 850 | 528 | 1,450 | 900 |
| Non-interest income | 1,237 | 1,395 | 583 | 903 | 739 |
| Non-interest expense | 5,056 | 4,565 | 4,666 | 4,621 | 4,965 |
| Income taxes | 318 | 511 | 314 | 122 | 72 |
| Net income | $ 1,155 | $ 1,532 | $ 1,080 | $ 699 | $ 618 |
| PER SHARE INFORMATION | |||||
| Earnings per share, basic | $ 0.42 | $ 0.57 | $ 0.40 | $ 0.26 | $ 0.23 |
| Earnings per share, diluted | $ 0.42 | $ 0.57 | $ 0.40 | $ 0.26 | $ 0.23 |
| Weighted average basic shares (000's) | 2,719 | 2,711 | 2,703 | 2,699 | 2,696 |
| Weighted average diluted shares (000's) | 2,722 | 2,711 | 2,704 | 2,700 | 2,696 |
| Dividends paid | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 |
| FINANCIAL RATIOS | |||||
| Annualized return on average assets | 0.68% | 0.89% | 0.62% | 0.41% | 0.36% |
| Annualized return on average equity | 5.94% | 7.75% | 5.63% | 3.74% | 3.38% |
| Efficiency ratio (1) | 71.93% | 61.21% | 70.83% | 67.05% | 75.74% |
| REGULATORY CAPITAL RATIOS | |||||
| Tier 1 leverage ratio | 10.14% | 10.21% | 9.87% | 9.78% | 9.79% |
| Total risk-based capital ratio | 18.23% | 18.56% | 17.76% | 17.61% | 17.45% |
| Tier 1 risk-based capital ratio | 16.89% | 17.31% | 16.51% | 16.36% | 16.20% |
| T F FINANCIAL CORPORATION | ||||||
| UNAUDITED FINANCIAL INFORMATION | ||||||
| (dollars in thousands except per share data) | QUARTER ENDED | |||||
| 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | ||
| AVERAGE BALANCES | ||||||
| Loans | $ 493,396 | $ 497,258 | $ 502,574 | $ 499,024 | $ 501,543 | |
| Mortgage-backed securities | 61,971 | 61,079 | 66,283 | 63,940 | 66,401 | |
| Investment securities | 67,035 | 67,843 | 67,662 | 68,439 | 67,035 | |
| Other interest-earning assets | 13,619 | 6,699 | 3,237 | 4,420 | 3,237 | |
| Total earning assets | 636,021 | 632,879 | 639,756 | 635,823 | 638,216 | |
| Non-earning assets | 50,557 | 52,263 | 53,907 | 50,346 | 48,984 | |
| Total assets | 686,578 | 685,142 | 693,663 | 686,169 | 687,200 | |
| Deposits | 554,523 | 551,964 | 555,713 | 546,215 | 546,055 | |
| FHLB advances and other borrowed money | 47,387 | 48,109 | 54,709 | 57,972 | 60,446 | |
| Total interest bearing liabilities | 601,910 | 600,073 | 610,422 | 604,187 | 606,501 | |
| Non-interest bearing liabilities | 6,523 | 6,600 | 7,075 | 7,039 | 6,482 | |
| Stockholders' equity | 78,145 | 78,469 | 76,166 | 74,943 | 74,217 | |
| Total liabilities & stockholders' equity | $ 686,578 | $ 685,142 | $ 693,663 | $ 686,169 | $ 687,200 | |
| SPREAD AND MARGIN ANALYSIS (TAXABLE EQUIVALENT) | ||||||
| Average yield on: | ||||||
| Loans | 5.05% | 5.13% | 5.26% | 5.38% | 5.32% | |
| Mortgage-backed securities | 3.50% | 4.22% | 4.20% | 4.21% | 4.24% | |
| Investment securities | 4.27% | 4.15% | 4.13% | 4.28% | 4.35% | |
| Other interest-earning assets | 0.06% | 0.11% | 0.00% | 0.09% | 0.00% | |
| Total interest-earning assets | 4.71% | 4.88% | 5.01% | 5.11% | 5.08% | |
| Average cost of: | ||||||
| Deposits | 0.77% | 0.82% | 1.02% | 1.06% | 1.08% | |
| FHLB advances and other borrowed money | 3.44% | 3.39% | 3.43% | 3.49% | 3.75% | |
| Total interest-bearing liabilities | 0.98% | 1.02% | 1.24% | 1.29% | 1.35% | |
| Interest rate spread | 3.73% | 3.86% | 3.77% | 3.82% | 3.73% | |
| Net interest margin | 3.78% | 3.91% | 3.83% | 3.88% | 3.80% | |
| NON-INTEREST INCOME DETAIL | ||||||
| Service fees, charges and other | $ 497 | $ 456 | $ 298 | $ 479 | $ 465 | |
| Bank-owned life insurance | 152 | 157 | 160 | 164 | 157 | |
| Gain/loss on sale investments | -- | 550 | -- | 210 | -- | |
| Gain on sale of loans | 324 | 232 | 125 | 50 | 117 | |
| Gain on disposition of real estate | 264 | -- | -- | -- | -- | |
| NON-INTEREST EXPENSE DETAIL | ||||||
| Compensation and benefits | $ 2,874 | $ 2,573 | $ 2,584 | $ 2,622 | $ 2,746 | |
| Occupancy and equipment | 710 | 719 | 699 | 736 | 818 | |
| Professional fees | 351 | 266 | 263 | 324 | 478 | |
| Marketing and advertising | 85 | 55 | 88 | 102 | 67 | |
| FDIC insurance premiums | 151 | 149 | 142 | 151 | 233 | |
| Foreclosed real estate expense | 287 | 308 | 317 | 119 | 61 | |
| Other operating | 598 | 495 | 573 | 567 | 562 | |
| T F FINANCIAL CORPORATION | ||||||||
| UNAUDITED FINANCIAL INFORMATION | ||||||||
| (dollars in thousands except per share data) | PERIOD ENDED | |||||||
| 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 3/31/2011 | ||||
| DEPOSIT INFORMATION | ||||||||
| Non-interest checking | $ 49,408 | $ 43,910 | $ 46,591 | $ 44,817 | $ 41,920 | |||
| Interest checking | 69,195 | 65,677 | 65,614 | 58,632 | 58,428 | |||
| Money market | 154,417 | 155,010 | 150,142 | 149,852 | 148,713 | |||
| Savings | 108,219 | 105,617 | 103,871 | 104,423 | 101,445 | |||
| CD's | 180,962 | 181,074 | 185,460 | 194,380 | 197,247 | |||
| OTHER INFORMATION | ||||||||
| Per Share | ||||||||
| Book value | $ 27.71 | $ 27.33 | $ 27.44 | $ 26.69 | $ 26.32 | |||
| Tangible book value | $ 26.18 | $ 25.81 | $ 25.91 | $ 25.16 | $ 24.79 | |||
| Closing market price | $ 24.20 | $ 22.72 | $ 19.25 | $ 21.42 | $ 20.83 | |||
| Balance Sheet | ||||||||
| Loans | $ 498,356 | $ 502,713 | $ 515,318 | $ 508,371 | $ 507,785 | |||
| Cash and cash equivalents | 22,340 | 14,928 | 14,475 | 8,786 | 10,668 | |||
| Mortgage-backed securities | 63,988 | 58,970 | 63,029 | 67,520 | 61,476 | |||
| Investment securities | 69,556 | 65,778 | 65,514 | 68,551 | 67,364 | |||
| Total assets | 693,421 | 681,929 | 695,168 | 691,561 | 684,221 | |||
| Total deposits | 562,201 | 551,288 | 551,678 | 552,104 | 547,753 | |||
| FHLB advances and other borrowed money | 46,685 | 46,908 | 59,500 | 55,345 | 55,387 | |||
| Stockholders' equity | 78,528 | 77,408 | 77,499 | 75,332 | 74,270 | |||
| Asset Quality | ||||||||
| Non-performing loans | $ 13,889 | $ 12,541 | $ 17,103 | $ 18,308 | $ 21,064 | |||
| Allowance for loan losses | $ 6,981 | $ 8,100 | $ 9,586 | $ 9,108 | $ 8,906 | |||
| Net charge-offs | $ 1,619 | $ 2,337 | $ 49 | $ 1,248 | $ 322 | |||
| Allowance for loan losses to non-performing loans | 50.26% | 64.59% | 56.05% | 49.75% | 42.28% | |||
| Allowance for loan losses to gross loans | 1.40% | 1.61% | 1.86% | 1.79% | 1.75% | |||
| Non-performing loans to gross loans | 2.79% | 2.49% | 3.32% | 3.60% | 4.15% | |||
| Non-performing loans to total assets | 2.00% | 1.84% | 2.46% | 2.65% | 3.08% | |||
| Foreclosed property | $ 10,247 | $ 11,731 | $ 8,909 | $ 9,245 | $ 8,002 | |||
| Foreclosed property to total assets | 1.48% | 1.72% | 1.28% | 1.34% | 1.17% | |||
| Non-performing assets to total assets | 3.48% | 3.56% | 3.74% | 3.98% | 4.25% | |||
| Statistical | ||||||||
| Shares outstanding (000's) | 2,834 | 2,832 | 2,824 | 2,822 | 2,822 | |||
| Number of branch offices | 14 | 14 | 14 | 14 | 14 | |||
| Full time equivalent employees | 176 | 168 | 172 | 179 | 177 | |||
| (1) The efficiency ratio is non-interest expense divided by net interest income plus non-interest income. | ||||||||
CONTACT: Dennis R. Stewart, EVP/CFO
(215) 579-4000